Datadog (NASDAQ: DDOG) insiders raised a red flag in Q3 by selling shares en masse, creating a market headwind. However, the insider selling isn’t necessarily bad news, as most sales were triggered by prearranged 10b5-1 trading plans, and there were some extenuating circumstances.
DDOG shares have increased by approximately 100% year-to-date, more than doubled year-over-year, and now trade about 6.75x their initial public offering (IPO) price, presenting a profit-taking point any investor would envy. The more critical details, however, are that insiders, including founders, still own more than 6% of the shares, shares are soaring, and the gains are far from over.
